Iridium Communications (IRDM) investor relations material

Executive summary

• Revenue for Q2 2026 was $225.2 million, up 4% year-over-year, with service revenue comprising 72% of the total and net income of $9.7 million, down 56% from Q2 2025 due to higher operating and transaction costs related to the Rocket Lab merger and Aireon acquisition.

• The company completed the acquisition of Aireon Holdings in July 2026, consolidating the world's only space-based ADS-B air traffic surveillance system.

• Total billable subscribers grew 6% year-over-year to 2,627,000, led by commercial IoT growth.

• Operational EBITDA for Q2 2026 was $119.1 million, slightly down from $121.3 million in Q2 2025, impacted by increased cash incentive compensation.

• An agreement to be acquired by Rocket Lab was signed in June 2026, with the transaction expected to close in mid-2027, subject to customary conditions.

Financial highlights

• Q2 2026 total revenue increased 4% year-over-year to $225.2 million; net income fell to $9.7 million from $22.0 million.

• Six-month revenue rose 3% to $444.3 million; net income for the period was $31.3 million, down 40% from $52.4 million in 2025.

• Commercial service revenue was $133.7 million, up 4% year-over-year; government service revenue was $27.6 million, up 3%.

• Equipment revenue rose 7% to $20.8 million; engineering and support revenue increased 3% to $43.1 million.

• Operating expenses rose 15% in Q2, mainly due to a 50% increase in selling, general, and administrative costs from transaction-related expenses.

Outlook and guidance

• No updated financial guidance provided due to the pending Rocket Lab acquisition.

• Engineering and support service revenue is expected to be higher in 2026 than 2025, driven by government contracts.

• Selling, general, and administrative expenses are projected to rise due to ongoing transaction and integration costs.

• The company expects interest expense to increase following the $100 million draw on the Revolving Facility for the Aireon acquisition.

• Expects renewal of the EMSS contract with the U.S. Space Force by March 2027.